Cramer names 3 reasons why the market rose on the day when he had no time for it.

On Tuesday, Wall Street was supposed to decline, but the stock market showed a great increase.

The usual suspects – a slew of negative analyst notes, rising bond yields, mixed earnings, weak housing data and commodity price spikes – all lined up against the market on Tuesday. Not to mention St. Louis Federal Reserve Bank President James Bullard’s comment a day earlier that Interest rate hike by 75 basis points the upcoming policy meeting may be an opportunity to accelerate the central bank’s fight against inflation.

“If all the usual suspects have alibis, that could explain today’s surprise rally,” CNBC’s Jim Cramer told Crazy Money Tuesday. “I think we tend to underestimate our advantages,” he added.

Cramer listed three main reasons for what he called “weird behavior” in the market.

  1. The market was oversold, making it difficult for stocks to fall.
  2. Cramer recalled 1994, when the Fed doubled rates and stocks were still rising. Based on history, Bullard’s tough speeches may not be all that bad, he said.
  3. Another reason for the market’s strength on Tuesday, Cramer said, is that the US is in a better position than other countries, indicating a reopening American economy and reliable energy sources.

While inflation is admittedly a problem, Cramer has an answer for that as well.

“We have higher steak prices, more expensive cornflakes and bigger gas bills, but we also have much higher wages to deal with the pain,” he said.

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